Lease agreements and rental agreements are two different ball games and play different roles in real estate. It’s quite common to misuse the two terms.
Renting and leasing properties are very easy to achieve with Brent Housing.
Stay on the article till the end to find out how.
A LEASE AGREEMENT IS DIFFERENT FROM A RENTAL AGREEMENT
A lease is a contract to grant someone the use of an asset, it could be a house or apartment in this case, for a specified period of time, in exchange for regular payments While renting involves a tenant periodically paying a property owner (landlord) money to live in a house or apartment.
A lease serves as a binding, legal agreement between the property owner and the tenant. As such, it is very important to make sure it thoroughly addresses the rules, policies, and conflict resolution procedures for living in the rental property, and clearly defines tenant and landlord responsibilities.
The difference between lease and rent is that a lease lasts for 12 months while a rental agreement generally lasts for 30 days. This means the landlord can’t raise the rent without the tenant’s written consent or evict one without cause, and you can’t stop paying rent or break the lease without some stated consequences.
In this article, we’ll be looking at the role of lease agreements in real estate.
HOW LONG DOES A LEASE LAST?
A lease can be as short as one week and as long as 30 years, it depends on the use of the building in question.
The most common lease term in agreements is usually one year and then gets renewed when the year expires.
When a lease is referred to as short-term, it usually means the duration is less than six months.
BENEFITS OF A LEASE AGREEMENT TO THE TENANT
Tenants like having a lease because the landlord cannot change the terms or increase the rent during the lease term. This has been beneficial for tenants who have seen rents escalate significantly in the last few years. Tenants with leases have been protected from a variety of other potentially unpleasant changes in terms that could occur if their rental property changed ownership.
WHAT CAN CANCEL A LEASE AGREEMENT?
A lease agreement can be nullified for some reasons like;
- If the tenant is active in the military or armed forces.
- The property is violating habitable standards and the landlord isn’t doing much to help.
- If the landlord violates some rules or harasses the tenants.
It is of paramount importance that a lease agreement thoroughly addresses the rules, policies, and conflict resolution procedures for living in a property, and clearly defines tenant and landlord responsibilities.
Brent Housing has the expertise that can save you from difficult situations that may arise from not having the proper lease as a landlord. Click here now to learn more.